Examining the Process

There are three distinct phases to developing a new strategy: analysis, planning, and implementation. It is vital to devote time and effort to the first two stages, but also to maintain momentum throughout implementation to ensure ultimate success.

Analyzing thoroughly

During the analysis phase, you will collect as much background information as you can to help you make informed decisions. This stage is crucial because the facts you have to hand will influence the direction you decide to take. You will analyze what is happening inside your organization, looking carefully at aspects of your own and other parts of the company that may influence the plan. You will also find out what your customers want, how your competitors operate, and what the research trends or developments in your industry are. Your aim is to draw up a clear statement of the strengths and weaknesses of your position as well as a list of opportunities for the future.

Delegating research

Assign fact-finding exercises to members of your team. Information can be gleaned from publications, the Internet, and from talking to customers and contacts.

Planning strategy

Having gathered all the necessary facts, the next phase is to make strategic decisions that will bring you closer to your overall aim. You will need to take into account where you have advantages over the competition and establish the boundaries within which you will operate. The first step will be to list the products and services likely to be in demand in the future, and the markets that are available to you. You will then choose which of these markets you wish to develop, whether with existing products and services or new ones. Similarly, you will choose which markets it would be beneficial to leave. The decisions you reach will help you to establish your future financial position and work out a realistic budget.

Questions to ask yourself

• Can I outline the strategic process to others?

• Do I know where to look for the information I require?

• Am I prepared to put enough time into the first two phases of developing a new strategy?

• Can I get the support of my superior in establishing a new strategy?

Building a strategy

There are three stages in the strategic process: analysis provides the basis for making choices, planning provides direction, and implementation brings the results.

Implementing strategy

During the final phase of developing a strategy you will determine, on the basis of your analysis, what you are going to do and how you are going to do it. It may be possible to achieve your aims with little change to the way the team works. On the other hand, you may find that success depends upon making far-reaching changes and learning new skills. Do not make the mistake of working so hard on the analysis phase that planning and implementation receive less overall effort – this will result in less effective strategies and incomplete implementation. You will also need to communicate the strategy to everyone who needs to know about it, and adapt it to take on board any changes in circumstances and in the activities of the rest of the organization.